Mr. Speaker, I would first point out that we certainly will not support the amendment to remove the word “Canadian”.
As mentioned, the provision for the government to support or stimulate the creation of Canadian culture product is an important policy of the government. The motion before us for debate proposes a lower tax rate for creative and interpretive artists on income from creative written works, such as royalties and sales produced from copyright and related rights.
The hon. member is to be commended for her endeavour to support the artistic community. I think we all on this side of the House that. Supporting our remarkable and diverse community of artists is crucial to maintaining Canada's identity as a nation. It is absolutely vital that we possess the necessary tools to safeguard our own culture and to tell our own stories.
The government already provides considerable resources to help ensure that our artists and cultural industries remain vital and prosperous, especially as Canada enters the new millennium. These important supports are delivered through a number of organizations and institutions, representing our commitment to continued excellence in the arts.
I would like to take this opportunity to highlight some of the main institutions, programs and policies available to help Canadian artists, writers and performers in pursuing their chosen craft.
For example, the government provides financial support to writers and other artists through the Canada Council, such as grants, prizes and other assistance for the promotion of the arts, as well as some fellowships in the humanities and social sciences. In 2001-02 the Council awarded nearly 6,300 grants, for a total of $137 million in direct support for Canada's artists and artistic organizations.
Our National Film Board is known throughout the world for its reputation of quality. The Film Board is dedicated to producing and distributing films, audiovisual and multimedia works which reflect Canada to Canadians and the rest of the world. For over 60 years the Film Board has played a crucial role in Canadian and international filmmaking.
The Department of Canadian Heritage also offers a number of important programs, including the cultural initiatives program, which facilitates the involvement of artists from across Canada in over 150 national and international art festivals and special art events. Canadian Heritage also operates a national arts training contribution program, supporting national institutions that prepare young people for professional arts careers.
Turning attention to the tax system, I would note that it too already includes a number of favourable provisions targeted to Canada's cultural sector.
For example, artists may deduct the costs of creating a work of art in the year the costs are incurred instead of when the work is ultimately sold. Moreover, employed artists and musicians are entitled to deduct certain employment related expenses against their employment income which are not available to other employees.
Other important tax provisions in support of Canadian culture include a tax credit for Canadian film and video productions, including the cost of services provided by scriptwriters. This credit provided $145 million in direct support for Canadian film and television producers in 2001-02. They also include deduction over time of the cost of Canadian art that is purchased by businesses and no taxation of capital gains on cultural property transferred to museums.
Turning to the motion before us today, I once again wish to laud the member for Dartmouth for wishing to provide additional support to our cultural community. However I feel that introducing a tax exemption for income earned by certain individuals, such as creative writers, may not be the most effective tool in achieving this result.
As I have already noted, the tax system recognizes the circumstances of artists and musicians in a number of ways. The special provisions ensure that these individuals are not penalized due to various aspects unique to their professions, such as the necessity of maintain valuable musical instruments or the difficulty in valuing art pieces donated from an artist's inventory.
However, outside of these special cases already provided for, it is not clear that artists, such as creative writers, have greater needs than other individuals with comparable incomes. The tax system should, as much as possible, treat individuals in similar circumstances in a similar fashion. Thus to provide a special tax exemption to an individual simply because he or she engages in artistic activities would be very difficult to defend on equity grounds. It would also lead to requests for similar treatment from other groups who also feel that they are deserving of special status.
When it comes to tax relief, I believe the course adopted by the government of substantial general tax relief is the correct one. The government's five year tax reduction plan provides real and significant tax relief to all individuals whatever their chosen career. These tax cuts are particularly beneficial to moderate and middle income families with children. The plan provided economic stimulus of about $17 billion in 2001 and $20 billion in 2002. Canadian writers will benefit from these historic tax reductions along with other taxpayers.
In conclusion, I feel the motion, well intentioned though it is, should not receive the support of the House.